The Green Chemistry Landscape in Minneapolis Saint Paul - Summer 2009 Katrina Mitchell June 2009 for the BlueGreen Alliance and the Minneapolis ...
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The Green Chemistry Landscape in Minneapolis Saint Paul Summer 2009 Katrina Mitchell June 2009 for the BlueGreen Alliance and the Minneapolis Saint Paul Mayors’ Green Manufacturing Initiative
Table of Contents
Background ................................................................................................................................. 1
How big is the chemicals industry?............................................................................................... 1
What is the opportunity for greener chemistry? ............................................................................ 1
The Green Chemistry Market ....................................................................................................... 2
But what is green chemistry?........................................................................................................ 3
12 principles of green chemistry ............................................................................................... 3
Precautionary Principle ............................................................................................................. 4
Continuous Improvement.......................................................................................................... 4
Measuring Green Chemistry ......................................................................................................... 4
Where is the market going?....................................................................................................... 6
Policy Trends ................................................................................................................................ 6
Industry Trends ............................................................................................................................. 7
Waste reduction & process efficiency ....................................................................................... 8
Reducing hazardous materials. ................................................................................................ 8
Replacement of petrochemicals / use of renewable feed stocks .............................................. 8
Consumer Trends ......................................................................................................................... 9
Barriers to growth led by consumers: ..................................................................................... 10
Green Chemistry certification is needed. .................................................................................... 11
What does green chemistry manufacturing look like in Minneapolis Saint Paul? ............. 11
Industry Cluster........................................................................................................................... 11
Four areas of leadership in the Minneapolis Saint Paul metro area: .......................................... 12
Industry details ......................................................................................................................... 13
Cleaning products, industrial and residential .............................................................................. 13
Industrial/commercial cleaning products manufacturers in Minneapolis Saint Paul: .............. 14
Residential cleaning products companies in Minneapolis Saint Paul: .................................... 18
Health and beauty products manufacturing ................................................................................ 20
Metro area natural health and beauty products companies:................................................... 21
BioBased Polymers and biorefining - using renewable feedstocks ............................................ 23
Metro area renewable materials companies: .......................................................................... 24
Paints and adhesives.................................................................................................................. 27
Metro area paints, coatings and adhesives companies: ......................................................... 28
Other innovations:....................................................................................................................... 29
Opportunities: ........................................................................................................................... 30
Green buildings........................................................................................................................... 30
Health care industry .................................................................................................................... 30
What can be done to grow Green Chemistry? ....................................................................... 30
Work to adopt a comprehensive green chemicals policy at the state level. ............................... 30
Adopt and promote Environmentally Preferable Purchasing policies and programs:................. 31
Foster information exchange and learning networks .................................................................. 32
Decrease the barrier to innovation.............................................................................................. 32
Marketing and public service message....................................................................................... 33
References: ............................................................................................................................... 34
Appendix A: The Twelve Principles of Green Chemistry...................................................... 36
Appendix B: The Michigan Directive ...................................................................................... 39
Appendix C: Occupational Structure of the Chemistry Industry ......................................... 38
Appendix D: Green Chemistry Resources ............................................................................. 38
-i-
Background
How big is the chemicals industry?
Global chemical production, particularly of commodity chemicals, is a mature industry. In 1930 1
million tons of chemicals were produced worldwide, in 2005, 400 million tons were produced1.
Chemical production is the thirteenth largest industry in the world. The United States alon
produces or imports over 42 billion pounds of chemicals daily2. Over 100,000 different
chemicals are produced each year, and over 3000 high volume chemicals, those on a
magnitude of over 1 million pounds per year, are produced or imported for use in the United
States each year3. In 2001, global trade was valued at $1.6 trillion, and the chemistry industry
continues to expand at a rate of 3-5percent4 per year, doubling every 25 years5. In the United
States the chemistry industry accounts for one to two percent of GDP and employs
approximately one million people.6
At the same time, there is a reduction in key areas of green chemistry, namely the pesticides
industry, due to advances in biotechnology. Citigroup estimates a $2 billion reduction in
pesticide demand since 1995.7
What is the opportunity for greener chemistry?
There are many opportunities to increase green chemical production and use. Chemistry
permeates our lives, whether we think about it or not. From the cleaning products we use to the
drugs we take, from our hand lotion to our choice of outdoor furniture, our pool cleaners, the fuel
we use and the way we build and remodel our homes, chemistry plays a huge role. Chemicals
are used throughout industry, beyond the manufacture of chemical products themselves;
chemistry plays a role in all manufacturing through the use of solvents, adhesives, fuels,
coatings, dyes and cleaners. In building and maintaining our schools and hospitals, in the
buildings where we work and play, in our homes and in the care of our bodies, chemistry plays a
major role. Though we may not be aware of it, greener options exist for many of the products we
use every day.
The ecological and health impacts of the chemistry industry are significant. From the 77,000
existing hazardous waste sites expected to grow at a rate of 600 per year8, to the
bioaccumulation of chemicals such as dioxin, PFOS and other endocrine disruptors. There is a
need for clean, green chemistry.
While opportunities exist across all products and processes, the main product areas where
green chemistry has been growing most rapidly are:
1
Innovest Chemicals Industry Overview, March 2007.
2
California brief
3
EPA High Volume Chemicals paper
4
In "The State of Green Business 2009: Greener Design Comes Out of the Lab," Joel Makeover states a rate of
3percent (February 9, 2009 GreenBiz.com); The Metabolix website quotes a rate of 4-5percent; Frank Ackerman
sites figures from 2001 on the global value of chemistry in his paper for Health and Environment Funders Network, "
Green Chemistry: Strategic Opportunities" (November 2007).
5
Wilson, et. al, 2006.
6
Ackerman, 2007. Original source: Marianne Lines, “Addressing Sustainability in the Chemical Industry,” in
Transforming Sustainability Strategy into Action, (eds.) Beth Beloff, Marianne Lines, and Dicksen Tanzil, Wiley 2005
7
Parzen, 2007; Innovest, 2007.
8
Wilson, et. al. 2006.
-1-• Industrial and residential cleaning products
• Personal and home care products
• Paints, finishes and adhesives
• Plastics
• Fuels and solvents
Additionally, across all chemical (and non-chemical) processes, there is a growing demand
within chemicals manufacturing to:
• Reduce wastes
• Replace non-renewable feedstocks with renewable, bio-based materials
• Reduce use of hazardous or toxic materials in production as well as reduce toxicity of
the final product.
The Green Chemistry Market
The field of green chemistry is expanding. In the past few years there have been advances in
around the use of renewable feed stocks. Leaders from academia, industry, government and
the non-profit sector are now coming together in innovative ways to advance the next
generation chemicals industry9.
As publicity grows about the impact of chemicals on our health and the environment, consumers
are looking for greener products for their homes and personal use. The explosive growth of the
green building products industry shows that new markets can be defined based on
environmental and ecological ideals10.
Greener options exist for many chemicals, and both the expertise and the variety of green
chemicals are expanding rapidly. More and more, consumers have the opportunity to make
better choices for themselves and the environment, and a growing number of people are doing
this, despite the economic downturn.11 As an example, greener chemical options exist in many
areas, including:
• Plastics manufacturing - ultimately our cars, toys, clothing, furnishings
• Cleaning products, both commercial and residential
• Lawncare, fertilizers and pesticides
• Swimming pools
• Fuels including biofuels
• Healthcare products and pharmaceuticals
• Personal care products including health and beauty
• Paints, adhesives and building products
Driven by pure scientific innovation, a response to the growing public awareness, and a desire
to improve the triple bottom line, many of these areas are experiencing rapid market expansion
and advances in technology. Large amounts of venture capital, foundation and government
funds have recently become available for expansion and commercialization of some of these
cutting edge technologies, particularly renewable materials. Minneapolis Saint Paul metro area
based renewable materials companies alone have recently secured over $60 million in private
funding for technology expansion and commercialization.12
9
Julia Parzen. Integrating Green Chemistry and Safer Materials into Regional Economics and Workforce
Development Strategies. For the Health and Environmental Funders Network. August, 2007; David Wallinga,
personal conversation, April 2009
10
Ackerman, 2007
11
EnviroMedia report for GreenSeal on consumer choices.
12
Tom Webb, "What's Developing: Bioscience Players in Minnesota," 3/27/2009.
-2-Green chemistry makes good business sense. Prevent wastes
Major U.S. companies like S.C. Johnson and 3M Renewable materials
have been improving their bottom line by greening Omit derivatization steps
their production for years.13 Green chemistry Degradable chemical products
makes sense for business for a wide variety of Use safe synthetic methods
reasons including cost savings through waste Catalytic reagents
reduction, response to the customer's demands Temperature, pressure ambient
for healthier products and reducing future liability In-process monitoring
by engaging a precautionary approach to Very few auxiliary substances
chemicals use. E-factor, maximize feed in product
Low toxicity of chemical products
Yes, it is safe.
But What Is Green Chemistry?
Green chemistry is an emerging field. In part due Figure
1:
The
twelve
principles
of
green
to the growing number of concerns about toxics in chemistry
consumer products14, desire to reduce energy
consumption and greenhouse gases and impending resource shortages, green chemistry seeks
to find new solutions that reduce waste, eliminate toxic chemicals, use renewable feed stocks,
and improve energy efficiency in chemical production.
Definitions of green chemistry are fairly consistent across industry, academia and the public
sector. The United States Environmental Protection Agency and the Europe-based Organization
for Economic Cooperation and Development (OECD) definitions are nearly the same. For the
purposes of this report I will use the OECD definition:
The OECD defines green chemistry as: “the design, manufacture, and use of
environmentally benign chemical products and processes that prevent pollution,
produce less hazardous waste and reduce environmental and human health
risks."15
Green chemistry is still an emerging field. Despite the clarity of the OECD's definition, green
chemistry is a broad concept that has implications across almost every area of life.
12 Principles of Green Chemistry
Developed by Paul Anastas and John Wagner in 1998, these twelve principles form the base of
much of the green chemicals thinking (see Figure 1 for a simplified version16, the complete
version is in Appendix A). While it is often impractical to achieve all of these goals at once,
these principles lead to safer manufacturing practices, products that have minimal harmful
effects on people or the environment, reduced waste, less pollution, decreased reliance on oil
and other non-renewable feed stocks and reduced carbon emissions.
The E-factor measures the ratio of the mass of waste produced versus the mass of the product.
A low e-factor indicates efficient production and minimized waste. Use of catalytic reagents also
minimizes waste as they can be re-used multiple times. Auxiliary substances refers to things like
solvents and reagents, chemicals that are not part of the chemical reaction. Minimizing these
also minimizes waste.
13
Joel Makeover, 2009; Tom DePasqualie (3M), personal conversation, May 2009.
14
Joel Makeover, 2009.
15
Ackerman, 2007.
16
Figure taken from S.L.Y Tang, R.L. Smith and M. Poliakoff. Green Chem. y, 761-762; 2005; Source: Poliakoff &
Licence, ibid.
-3-Precautionary Principle
The precautionary principle as applied to chemical manufacturing puts the burden of proof that a
chemical is harmless on the side of the producer, versus the current regulatory approach that
puts the burden of proof that a chemical is harmful on the public. This is the underlying principle
of the European Union's REACH approach to chemicals regulation:
"The aim of REACH is to improve the protection of human health and the
environment through the better and earlier identification of the intrinsic properties
of chemical substances."17
It is also the principle behind the Life Cycle Analysis and Total Impact approaches that many
area manufacturers use.
Continuous Improvement
Green chemistry is not about declaring an end product that is "green" (though there certainly are
some), but generally refers to designing processes that are continually improving the
performance of chemicals, reducing waste, and that ask important questions at every stage of
manufacturing and use about the impact of products and the manufacturing process on human
health.
Green chemistry is complex; it is not black and white but rather exists on a continuum. Many
industry leaders consider green chemistry a process of continuous improvement rather than a
series of identified green products18. Because total impact must be considered from resource
extraction to disposal, there are few chemical products that are easily defined as green. Lack of
information, lack of alternatives and complex decisions about tradeoffs plague this industry. The
complexity of decisions regarding whether a product or company is green opens the door for
spurious claims by product manufacturers and increases the challenge in educating consumers.
Measuring Green Chemistry
As with any industry within the emerging green economy, the employment and firm data
available from the Bureau of Labor Statistics is of little use in measuring green chemistry. There
are no distinctions between green and traditional jobs within the NAICS classification system
and, of all the "green" sectors, green chemistry seems the hardest to separate and quantify.
Chemical production is complex and chemistry permeates the production and maintenance of
nearly everything we use. While there are some products that can be certified as green, and
undoubtedly, there are some jobs that are directly related to these products, it is very difficult, if
not impossible, to measure the employment and economic contribution of green chemistry in
isolation. The majority of the positive impact of using the principles of green chemistry is
imbedded in the use and production of chemicals across a wide range of industries, most of
which are not considered to be "green.” The economic impact is in the cost savings captured in
waste reduction, reduction in workplace injuries and improved worker health and productivity.
Chemical production requires similar skills whether green or not. Since green chemistry is
emerging, a majority of the technology specific jobs are in research and development
occupations19.
Across chemicals manufacturing just over half of the workforce is in production occupations,
with the greatest opportunities for production jobs in rubber products manufacturing (71.7
17
REACH website: http://ec.europa.eu/environment/chemicals/reach/reach_intro.htm
18
David Wallinga, personal conversation; Lynne Olson, personal conversation; Pam Helms, personal conversation
19
Mitchell, et. al., Green Cities, Green Jobs, 2008
-4-percent of the workforce) and plastic products manufacturing (61.3 percent of the workforce).
Lower percentages of manufacturing employment in well established industries such as basic
chemicals (44.3percent), pharmaceuticals (28.8percent), agricultural chemicals (44.1percent)
and soap, cleaning compound and toilet preparation products (42.7percent) could reflect a
growing global trend to locate manufacturing facilities in developing countries where production
costs are lower, and less transportation is required between raw materials, manufacturing and
markets. (See Figure 2, data source: Bureau of Labor Statistics, 2007, larger version in
Appendix C)
Figure 2
While there are no tools to accurately measure employment in the green sector, there are some
tools that can determine the economic and environmental impact of a particular production
process, though usually not on a local or very specific level. The Environmental Input-Output
Life Cycle Assessment provides national level data on the economic and environmental impact
of a particular process. For assessment at other scales, the Environmental Protection Agency's
Tool for the Reduction and Assessment of Chemical and other Environmental Impacts (TRACI)
could be useful, however, it has a limited number of preset models, and is geared toward broad
scale change, such as opening or closing a plant, versus incremental change, like switching
from the use of a material known to have adverse environmental and health impacts. For
example, it could not assess the impact of switching from PVC to a more benign option such as
non-chlorinated plastic, or switching from a process using a reagent to a catalytic process.20
The nature of green chemistry means that a large share of its environmental and health impacts
are embedded in the production of regular (“non-green" products. The case of Ibuprofen is one
classic example. The original patented formula involved 6 steps, and had an overall atom
efficiency of only 40percent. In 1984 the process was redesigned. The new process uses
catalysts, eliminates 20,000 metric tons of waste per year and reduces the need for non-
renewable inputs (aluminum trichloride). Ibuprofen is now produced in just three steps, and has
an over all atom efficiency of 77percent21. Considering the scale of production, greening the
production of chemicals that are produced for a wide (non-"green") market can have a great
impact.
20
Ackerman, 2007. For a more robust explanation of the issues involved with the economic modeling available using
the TRACI and EIO tools see Ackerman, 2007.
21
Poliakoff, Martyn and Pete Licence. "Green chemistry"
-5-While a niche green product company might be able to make a truly green product, the true
challenge is waste and hazard reduction at scale. Producing high quality green products on a
small scale is important but in comparison to greening the process of a major traditional
company that produces a non-green formula at hundreds of times the scale, it has little overall
impact. There are many large companies who have focused research and development on
improving performance, reducing waste and toxicity, applying as many of the green principles
as economically feasible. Many of these companies, such as 3M, Cargill and Ecolab, lead the
way in research and development, As these companies strive to improve performance and
reduce environmental and health impacts, they push the technology forward, creating
innovations that are applicable across a wide variety of businesses.
Where Is the Market Going?
Policy Trends
One of the growing movements in green chemistry is toward more effective regulation. While
products and processes are becoming more and more green for business and market reasons,
the need for improved chemistry regulation is clear. In the absence of effective federal level
policy, states are creating their own green chemistry policies and the European Union's REACH
(Registration, Evaluation, Authorization and Restriction of Chemical Substances) policy is
redefining high level comprehensive chemicals policies that encourage innovation and
competiveness while providing greater protection for people and the environment. Current
federal level regulation through the Toxic Substances and Control Act (TSCA) is widely
criticized by chemists and environmental advocates.
There are over 80,000 chemicals in the U.S. Environmental Protection Agency's (EPA)
chemicals database. Very little information exists about the effects and properties of the vast
majority of these22 Of the 3000 high production volume chemicals only 7 percent have a
complete set of data about basic toxicity, and 43 percent have absolutely no publicly available
data on possible acute and chronic health effects, reproductive effects, environmental fate,
ecotoxicity ormutagenicity.23 Approximately 1000 chemicals are added each year, and global
chemical production is expected to double every 25 years, further compounding the data gap24.
The TSCA takes a substance-by-substance approach and puts the burden of proof regarding
chemical toxicity on the public rather than on industry25. This system requires enormous
resources properly understand and monitor chemicals production. Testing the effects of
chemicals is cost and resource prohibitive, it is very hard to prove negative effects of a particular
chemical. Therefore, approximately 25 percent of the chemicals in the database are considered
hazardous based on known properties, but in the entire history of the TSCA only 5 chemicals
have been banned outright26. The lack of information about the effects of chemicals already in
production and use make the system, and manufacturers, vulnerable to liabilities.
In 2008, California became the first state to pass a comprehensive green chemicals policy,
setting up a framework for dealing with "chemicals of concern"; in 2006, Michigan's Governor
Granholm signed Executive Directive No. 2006-6 for the Promotion of Green Chemistry for
Sustainable Economic Development and Protection of Public Health. The Michigan Directive
22
EPA, Chemical Hazard Data Availability Study, 1998; Parzen, 2007
23
According to the EPA study, a high volume chemical is produced or imported in the United States at more than
1,000,000 pounds per year.
24
Green Chemistry: Cornerstone to a Sustainable California, brief prepared for the Green Chemistry Initiative, 2008.
25
Catherine Zimmer, personal conversation, March 2009
26
Catherine Zimmer, personal conversation, March 2009
-6-and the California Green Chemistry Initiative are considered models for how states can lead the
way toward comprehensive chemicals regulation.
On a global level, the European Union's REACH directive has facilitated a major shift in
chemicals production for the European market. The new policy requires extensive testing of the
approximately 30,000 chemicals sold in quantities greater than 1 ton per year in the EU27.
Critics of the REACH policy state the expense of this testing, several billion dollars, and
compliance requirements could negatively affect the profitability of chemicals producers. The
REACH legislation will save local governments more than the cost of testing by reducing the
need for wastewater treatment alone, and the reduction in cancers and other illnesses saves the
healthcare industry in both the short and long term. Initial fears that this policy would put a halt
to innovation have been unfounded. The REACH legislation is targeted at large scale, legacy
producers of potentially hazardous chemicals; it lowers regulation on low-volume chemical
production, opening up the field for innovation by smaller companies.28
There is a high level of interest locally in changing chemicals regulation. Currently the Healthy
Legacy Campaign seeks to ban the use of a number of known toxic substances, such as
bisphenol-A (BPA)29. This proposed legislation, and bills of this kind, are stop gap measures to
further regulate these hazardous substances until more comprehensive chemicals policy can be
passed in the state.
In Minnesota, leaders across industry, academia and advocacy have started convening around
the idea of a comprehensive chemicals policy for the state. Steve Kelley at the University of
Minnesota's Center for Science, Technology and Public Policy has been the host and facilitator
of these conversations, providing a forum for idea exchange and exploration of a wide range of
topics in green chemistry. Many key people across academia and industry support a green
chemicals policy for Minnesota similar to those in Michigan and California.
Industry Trends
Businesses across the spectrum are engaging the principles of green chemistry because they
make good sense. The first step toward green chemistry is the use of biomass as a renewable
source of carbon. Renewable materials such as non-food crops and waste materials from bio
refining show great promise. The second major trend is in waste reduction, which takes on
many forms including use of catalytic agents to reduce byproducts and inputs in chemical
production, to creating concentrated and dry chemical products that reduce packaging waste.
The last major trend is probably the most contentious and involves reducing the toxicity of
chemical products and processes. Industry efforts are currently focused on three general realms
of green chemistry:
• Reducing waste and improving process efficiency
• Reducing toxicity and pollution prevention
• Switching to renewable, bio based carbon sources
Many chemical manufacturers use the principles of green chemistry because they positively
affect their bottom line. Designing and engineering chemical processes using these principles
reduces energy consumption, decreases the amount of waste firms have to dispose of, can
27
Ackerman, 2007
28
Ackerman, 2007
29
A recent study by the University of Rochester showed that 93percent of Americans tested had detectable levels of
BPA, a bioaccumulative compound that has been linked to cancer. BPA is banned in Canada and across Europe,
and 14 states are considering legislation to ban products with BPA (from: Susanne Rust. "Study: Chemical used to
make plastic lingers in body" Milwaukee Journal Sentinal, printed in the Pioneer Press on 1/28/2009).
-7-reduce the amount of inputs required, and overall improve production efficiency30. In many
cases firms find that switching to green chemistry is good business31.
Waste Reduction & Process Efficiency
Waste reduction refers to a wide range of green strategies, from waste reduction in chemical
formulation and production by using continuous processes and maximizing atom efficiency, to
reduction in packaging and distribution. Waste reduction greatly impacts the profitability of a
product and many companies pursue waste reduction strategies because it is good business,
the environmental benefit is sometimes a secondary consideration.
There are many inspiring examples of waste reduction strategies within industry. Three distinct
examples show the range of solutions available when new thinking is applied to existing issues.
Ecolab's mid 1980s switch to solid products which reduced packaging, transportation costs, and
storage space, thereby reducing carbon emissions and energy use. The reformulation of
Ibuprofen after the patent expired in 1984 eliminated 20,000 tonnes of waste per year, and an
innovative business arrangement between Dupont and Ford Motors Canada dramatically
reduced the product needed and waste created in painting cars.
Reducing the amount of inputs into a reaction whenever possible will reduce the amount
of product and waste. This simple technique for waste prevention may seem at odds
with the goals of industry - whose profits are generally based on quantity of product
produced and sold - yet it has already been employed in certain cases. One interesting
case involves DuPont and Ford. Rather than buying actual paint for its cars, Ford has
contracted with DuPont for a car painting service. So instead of getting paid more to
produce more paint, DuPont is gets paid more to produce more painted cars. In this
arrangement, DuPont can save money by reducing – not increasing – the amount of
paint it makes and uses! Scale reduction is especially well suited to University teaching
laboratories, where the technique and experience gained is paramount, and obtaining
large quantities of product is insignificant.32
Waste reduction can also refer to using formulations that create the most effective product
possible so as to minimize the amount of inputs needed and reduce the by-products of
manufacturing, as well as reduce the total amount of product needed to achieve the desired
result. For example, a dilute material that has good biodegradability but requires twice as much
product as a more concentrated material may not be the best environmental choice. Less
effective but "green" products, while they claim to be biodegradable or natural, are not
necessarily the best choice when the total impact is considered.
Reducing Hazardous Materials
While it is high on the agenda of many companies, reducing hazardous materials can be
difficult, primarily because so little is known about the vast majority of chemicals. Companies
like 3M cannot get information from upstream suppliers.
Replacement of Petrochemicals / Use of Renewable Feed Stocks
The need for renewable feedstocks is clear. Replacing the petrochemical supply chain is a key
concern of the chemical industry. Instability in the price and supply of oil, gas and coal are
driving chemicals companies to find alternate sources for the carbon needed for today's
30
Martyn Poliakoff and Pete Licence. Green Chemistry. Nature. Vol 450: December 6, 2007
31
Joel Makeover. Green Design Comes Out of the Lab. GreenBiz.com, January 2009; Interview with Aveda CEO,
Dominique Conseil, for GreenBiz.com, May 12, 2009, http://www.greenbiz.com/podcast/2009/05/12/aveda-paradigm-
shift-cosmetics
32
Marc Steyer, MIT student paper, from an unknown source; Lynne Olson, Ecolab, personal conversation, May 2009.
-8-chemistry industry33. The vast majority of the chemicals sold today are carbon-based. The
industry relies on limited resources of oil, coal and natural gas for the supply of carbon
necessary to meet the demands of the market34. Over 90percent of the chemicals used today
rely on non-renewable petrochemical feedstocks. Though renewable feedstocks have become a
primary focus of the market there remain many challenges about their broad scale use, not least
of which is competition with the global food supply. In addition to the market the political
pressure developing in this area is growing, as oil resources become more scarce and the cost
of oil increases.
The Sustainable Biomaterials Collaborative advocates for the sustainable production of
biomaterials, including use of sustainable farming techniques, elimination of GMO crops in the
production of polymers, use of organic feedstocks, use of non-food crops, and better restrictions
on the land that is used.
Extracting carbon from biomass is one of the many challenges in this realm, as bio materials
have a different composition than oil (more oxygen) and require new reactions35.
Consumer Trends
The consumer market for green chemistry is growing. A recent study by Clorox found that a
majority of consumers are planning to buy eco-friendly products and many of these consumers
will pay a premium of up to 25percent for a more benign product. 36 While only 2percent of
people think using green personal care products will most benefit the environment, 31percent of
people surveyed did use green personal care products. The numbers are even higher for green
cleaning products where only 4percent of people think switching to green cleaning products will
have a significant effect on the environment, but 58percent of those surveyed purchased green
cleaning products37.
Through media coverage of issues such as lead found in children's toys, the effects of
bioaccumulative chemicals such as PFOS and dioxin, the concern over air quality and VOCs
and the link between chemicals and cancer, there is a growing awareness about the toxic
impact of substances we use on a daily basis. Driven by this new awareness and an overall
desire to "go green" many people are choosing greener products. Considering that chemistry is
all-pervasive, affecting almost all areas of our lives, there are many opportunities for green
chemistry products for the consumer market. Primary areas of opportunity for this market are:
• home cleaning and personal care products
• building materials
• plastics.
Industrial and commercial consumers have the power to affect significant change. Market-driven
efforts by major commercial consumers include:
• Healthcare Industry: from cleaning to medical plastics to pharmaceuticals, the industry is
one of the largest chemicals consumers;
• Building products: producing low waste, low VOC paints and adhesives that meet LEED
standards;
33
Tom Webb, "Starter Culture" Pioneer Press, 3/27/3009; Steve Davies, NatureWorks, personal conversation April
2009.
34
Ackerman, 2007; Poliakoff and Licence, 2007.
35
Nature article
36
Elevance website: www.elevance.com; NY Times article, "Can Burt’s Bees Turn Clorox Green?"
37
EnviroMedia study for Green Seal
-9-• Janitorial Industry: cleaning our schools, offices and the places we play, this industry is
impacted primarily through Environmentally Preferable Purchasing programs especially
educational initiatives like Green Schools;
• Hospitality industry: driven by environmentally savvy marketing and a desire to reduce
costs, waste reduction, toxics elimination and improved performance are key for this
experience based industry;
• Product manufacturing: from cars to medical devices manufacturers are looking to
reduce waste and impact through non-toxic and environmentally benign solutions.
Barriers to Growth Led By Consumers:
The primary barrier to consumer-led growth in green chemistry is lack of information. Recent
studies show that consumers are optimistic about green efforts, such as recycling, but have little
or no clear information about the products they use on a regular basis38. For example, 72
percent of Americans do not know that most plastic is made out of oil, 40 percent think plastics
will biodegrade (in home composters, marine environments, underground and in landfills), and
those surveyed believe that 38 percent of plastic is recycled in the U.S., when in reality,
according to the E.P.A., it is only six percent.39
The lack of available information affects industrial consumers as well. One of the greatest gaps
in the chemicals industry is knowledge about the specific effects of the vast majority of
chemicals in use today40. Without complete knowledge of the chemical inputs they are using, it
is impossible to do true life cycle or total impact assessment.
For the consumer this lack of information leads to a level of distrust, not knowing how to
distinguish between "greenwashing" and what is a valid green claim. Many companies are
actively providing information on green chemistry to their consumers. Seventh Generation has
an online, searchable database of typical ingredients in cleaning and personal care products
including both "traditional" toxic chemicals and natural ingredients. Method is a founding partner
in the B-Corporation initiative, which is a new sustainable business certification standard. While
B-Corporation labeling is not limited to green chemistry, another key company in the green
chemistry industry, Green Harvest Technologies, is also a founding partner. But approximately
33 percent of consumers don't know how to verify these green claims. While some companies,
like 3M, are very careful about product claims regarding environmental impact41, others create
their own green labels and make broad and general claims, which often further confuse
consumers42.
In the area of green chemistry, people are making choices to consume green products even
though they don't necessarily think it will have a large impact on the environment43. A recent
study by EnviroMedia for Green Seal, shows that despite the economic slowdown, people are
still making the choice to buy green chemistry products (cleaners and personal care products).
This reflects both the change in perception that green means more expensive, and a balancing
by consumers of a small price increase against choices that support personal and
environmental health.
38
Studies by EnviroMedia for GreenSeal, by Clorox; and, by InsightExpress for Metabolix
39
InsightExpress for Metabolix
40
US EPA report on lack of information about high production volume chemicals
41
Tom DePasquale, personal conversation
42
Pam Helms, Caldrea
43
The GreenSeal study was directed specifically at environmental impact, it didn't ask about impact of going green on
personal health - people could be making choices to use green chemistry out of both their environmental commitment
and a desire for a healthy life.
- 10 -Green Chemistry Certification Is Needed
Eco-labelling.org asks the question, "who's deciding what's green?" on their website dedicated
to discussing issues around ecolabelling. Their global ecolabels database currently has 298
different labels each with different standards and levels of verification and certification. Given
this sea of information it is no wonder consumers are confused.
In the consumer related industries, the major barrier to growth is consumer education and lack
of one consistent certification system. There are dozens of certification and eco-labeling
systems, some specific to an industry, some specific to particular types of products. Each
labeling system presents difficulties for both producers and consumers. Overall there is a lack of
clarity around product labeling and issues in green chemistry are too complex for simple
checklists. For example, cleaning products companies must balance effectiveness of the
product (minimizing waste in production and use) with cost and use of less preferable materials
Consumers often base purchasing on brand reputation, but also rely on eco-labeling and
personal research on what is green44. While a savvy consumer is good, sometimes consumers
make decisions based on faulty or misleading information. As one example, while Sodium
Laureth Sulfate (SLS) is often cited as a chemical to be avoided by advocates for safer personal
care products, sometimes the use of some SLS can make a product more effective, decreasing
the need for other harmful chemicals in the end products or in the manufacturing process. The
choices in green chemistry are not always clear cut.
Since the answers are unclear, third party certification could provide consumer confidence,
particularly if one certification system became the established leader. Consumers need better
information about the broad impact that chemicals and chemical production has on our
environment and our health. While there is growing awareness that chemicals may have a
health impact, there is less understanding about how switching green chemistry can have a
significant positive effect on the environment and other issues of great importance for our times.
For example, in many cases switching to bio-based plastics can impact our dependence on oil
and carbon emissions.
What Does Green Chemistry Manufacturing Look Like in Minneapolis Saint Paul?
Industry Cluster
This is a strong industry cluster even though jobs in chemical manufacturing are
underrepresented in the metro area (see Table 1). Basic chemicals manufacturing has a
location quotient as low as 0.12 which means we have only 10 percent of the expected
employment in this industry compared to the nation as a whole45. Employment data does not
reflect the entire picture of the presence, importance and impact of chemicals manufacturing on
the local economy. Many companies are headquartered in the metro area and maintain
research and development facilities in Minneapolis Saint Paul, but manufacture products in
neighboring states and other countries, closer to both the source of their feedstock and their
buyers. While it doesn't make business sense for large scale manufacturing facilities to be
located in the city, the presence of these large companies with research and development
facilities creates an atmosphere of innovation, critical for new business creation and retention of
top talent.
44
EcoMedia for Greenseal, ibid.
45
Generally industries with competitive advantage have a location quotient of 1.2 or higher, showing a concentration
of employment greater than that required to satisfy the demands of the local market.
- 11 -As of the 2002 economic census46 there were 435 firms and just over 21,000 jobs in the
chemicals manufacturing industry in metro area. Given the recent expansion of the bio-based
materials industry, and growth of companies like Restore and Caldrea, the total employment is
likely to be higher. When complete data is available next summer, a shift-share analysis of the
chemicals industry would likely be instructive. The metro area had a slight concentration of
employment in the bio polymers industry, but this industry has had significant growth since
2001.
The Minneapolis Saint Paul area is strongest in plastics manufacturing, with an LQ of 1.11 and
nearly a third of all chemicals manufacturing employment in the area (14,105 employees as of
the 2002 census). Growing the plastics manufacturing industry would have the greatest impact
on employment and the greatest opportunity to increase manufacturing jobs, even though most
of the manufacturing in plastics is done outside of the metro area.
Companies with diverse product lines, like 3M and Tennant, are not necessarily included in the
chemicals manufacturing employment data, and some companies, like Caldrea, are not
classified as chemicals manufacturers, though their activities and growth certainly impact the
chemicals manufacturing market.
Four Areas of Leadership in the Minneapolis Saint Paul Metro Area:
The Minneapolis Saint Paul metro area benefits from a historically strong base of knowledge in
chemical formulation and production. There are a number of key firms with deep roots in the
metro area including Cargill, 3M, Ecolab and Aveda. Over time these firms have demanded
specialized services and have created many spin-offs, growing the number of supportive and
related industries in the area. These four key firms in particular are known for their strong
Table 1
research in basic sciences and development of innovative solutions. They have been a resource
for chemical production locally and globally. Over time, the growth of these key companies has
contributed to an ideal business environment for smaller companies and startups in the realm of
green chemistry.
Green chemistry requires "innovative scientific solutions to real world problems"47, historically an
area that the metro area excels at.
46
Data from the 2007 economic census at the MSA level is not yet available
47
The Michigan Directive
- 12 -Our main export in the field of chemicals manufacturing is knowledge. We are the headquarters
and research and development home to many major chemicals manufacturers, though they
choose to build their plants closer to both markets and feedstocks. As a mature economy, it may
be time for Minneapolis Saint Paul to focus on the service and experience sectors in this key
industry. For example, the city of Portland Oregon focuses some of their economic development
effort on exporting and promoting their expertise in green building. Efforts to develop this
important local cluster could focus on supporting start-up companies and growing and exporting
our unique and cutting edge chemicals manufacturing knowledge.
Four major realms of green chemistry are at play in the metro area. We are strong in health and
beauty products manufacturing, renewable materials development, cleaning products
manufacturing and commercial coatings (paints, adhesives) manufacturing. There are also a
handful of firms working within the realm of green chemistry that are not in one of these four key
areas.
Industry Details
Cleaning Products, Industrial and Residential
The industrial cleaning industry contributes over $150 billion to the US economy and uses over
5 billion pounds of chemistry each year48. A high percentage of these chemicals are considered
to be toxic, contributing to a high level of workplace injuries among janitorial staff each year.49
Beyond worker and workplace health, cleaning products impact our waterways. Persistent
detergent metabolites were found in over 69 percent of streams tested in a 2002 U.S.
Geological Survey nationwide study50. In a state that prides itself on the beauty and cleanliness
of our natural waterways, thisan issue of great importance.
The growth of Environmentally Preferable Purchasing (EPP) and green cleaning programs in
local and regional government, educational institutions, hospitality, health care facilities and
across private business has created demand for cleaning solutions that are benign for the
environment and people. EPP policies seek to improve workplace health and reduce pollution
while increasing worker productivity and overall effectiveness. Local innovation in this industry
ranges from changes in product delivery and cleaning equipment, to reducing waste in
manufacturing and distribution and developing formulations from bio-based materials.
With three major companies in industrial cleaning technology located in the metro area, we are
leaders in innovation within this field. Ecolab, 3M and Tennant all invest heavily in product
development and basic research in the industrial cleaning industry.
What makes a green cleaner? Identifying the formulation that best produces the desired effect
while minimizing health and environmental impacts is one of the major challenges in the
cleaning products industry. There are over 298 different eco-labels, all of which require varying
levels of certification51. In green cleaning product formulation there has to be balance
effectiveness against environmental and health concerns. Many so-called green products
merely dilute the cleaning solution to achieve high biodegradability, but this leaves the product
less effective, often requiring use of additional chemicals to produce the desired effect.
Concentrated chemicals have a considerably lower biodegradability, but reduce waste in
48
RPN guide to green cleaners.
49
RPN guide to green cleaners
50
National Geographic “Green Guide Products Report” 2006, source: RPN guide to green cleaners
51
Eco-labelling website: http://ecolabelling.org/
- 13 -production, shipping and use.52 Very few people take into account this balance of efficiency and
effectiveness in green chemistry. The total impact is important, but also harder to measure.53
While consumer customers may still be willing to pay a premium for greener cleaners,
commercial customers will not spend more money on green products. Environmentally benign
and non-toxic cleaners have become the industry norm. More and more customers are
demanding green solutions. Concentrated chemistry may be part of that solution. Customers will
spend more for something that works twice as well, so they can use half as much54.
Economic development strategies in this realm should focus on consumer education and market
creation through the promotion of EPP programs with strong recommendations for local product
use.
Major challenges for this industry:
• Eco-labeling
• Consumer/citizen education
What is needed in Minneapolis and Saint Paul:
• Consumer education promoting EPP and the city's leadership in this area.
• Large companies, such as 3M needs help with their image, particularly in the face of
recent scandals and bad publicity.
Industrial/Commercial Cleaning Products Manufacturers in Minneapolis Saint Paul:
• Ecolab
• 3M
• Tennant
• Restore Products (also produces household cleaners)
• Cool Clean Technologies
• BioForce/EnviroRite
Ecolab
Ecolab is a global leader in chemistry for the industrial cleaning industry; in particular,
they lead the industry in solid chemical products development, manufacturing and
distribution. Ecolab finds that in some cases they push the market, such as their move to
dry products in the 1980s, while other times the market demands change. For example,
recent pressure from the hospitality industry to improve green standards and
performance has Ecolab searching for even more sustainable solutions and certifying
products for use in EPP and green certification systems.
It made better business sense to pack, ship and store dry products versus shipping
liquids, which are heavy, messy and require more storage space. This move
dramatically reduced packaging; product that previously required a 60 gallon drum could
be packaged in a 9 pound capsule. Shipping dry product reduces greenhouse gas
emissions (more product can be shipped per truckload) and the smaller packaging
requires less storage space, reducing energy consumption for warehousing and storage.
Launching this innovation in the 1980s, for both environmental and business reasons,
customers who were initially skeptical, now like both the convenience and savings
aspects of this dry product. This is one example of where Ecolab pushed the market.
52
Lynne Olson, Ecolab, personal conversation, May 2009
53
Todd Lafrenz, Metro State University, personal conversation, April 2009
54
Lynne Olson, Ecolab, personal conversation, May 2009
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